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This study employs a multivariate GARCH model to investigate the relative sensitivities of the first and the second moment of bank stock return distribution to the short‐term and long‐term interest rates and their respective volatilities. Three portfolios are formed representing the money center banks, large banks, and small banks, respectively. Estimation and testing of hypotheses are carried out for each of the three portfolios separately. The sample includes daily data over the 1988‐2000 period. Several hypotheses are tested within the multivariate GARCH specification. These include the hypotheses of: (i) insensitivity of bank stock return to the changes in the short‐term and long‐term interest rates, (ii) insensitivity of bank stock returns to the changes in the volatilities of short‐term and long‐term interest rates, and (iii) insensitivity of bank stock return volatility to the changes in the short‐term and long‐term interest rate volatilities. The findings indicate that short‐term and long‐term interest rates and their volatilities do exert significant and differential impacts on the return generation process of the three bank portfolios. The magnitudes and the direction of the effect are model‐specific namely that they depend on whether the short‐term or the long‐term interest rate level is included in the mean return equation. These findings have implications on bank hedging strategies against the interest rate risk, regulatory decisions concerning risk‐based capital requirement, and investor’s choice of a portfolio mix.

This study examined the level of interdependecies which existed among several major equity markets around the October 19, 1987, crash. Three different statistical techniques were utilized to analyze daily data for three months before and after the crash. All three techniques revealed that the major equity markets were more closely integrated during the post‐crash subperiod than the pre‐crash subperiod. The existence of the uni‐directional causality from the U.S. to Canada and from the U.S. to U.K. and bi‐directional causality between the U.S. and Japan during the post‐crash subperiod indicate that the U.S. market volatility contributed to the volatility in the foreign markets.

This study attempts to determine whether the level and volatility of interest rates affect the equity returns of commercial banks. Short‐term, intermediate‐term, and long‐term interest rates are used. Volatility is defined as the conditional variance of respective interest rates and is generated by using the ARCH estimation procedure. Two sets of models are estimated. The basic models attempt to determine the effect of contemporaneous and lagged interest rate volatility on bank equity returns, while the extended models incorporate additional contemporaneous macroeconomic variables. Contemporaneous interest rate volatility has little explanatory power, while lagged volatilities do possess some explanatory power, with the lag length varying depending on the interest rate series used and the time period examined. The results from the extended model suggest that the long‐term interest rate affects bank equity returns more adversely than the short‐term or the intermediate‐term interest rates. The findings establish the relevance of incorporating macroeconomic variables and their volatilities in models determining bank equity returns.

This study examines the durations of US stock market cycle expansions and contractions for the presence of seasonality. Specifically, it is determined whether the distributional characteristics (i.e., location and dispersion) of the durations of market expansions and contractions are dependent on the time of the year the market phase begins or ends. The duration data are obtained from a stock market chronology of monthly peak and trough dates for the period May 1835 through July 1998 and nonparametric rank‐based tests are used to test for the presence of seasonality. In order to provide some evidence on robustness with respect to the sample data, results are obtained for the entire sample period as well as for various sub‐periods. When the data are aggregated on a quarterly basis, the evidence suggests that seasonal structures are present in stock market cycle durations. These seasonals are related primarily to shifts in location over the course of the year and to when a market expansion or contraction begins. However, when the duration data are aggregated on a bi‐annual basis, support for seasonality is much more limited.

This study examines the stock market reactions to an involuntary adjustment to loan‐loss reserves by the write‐downs of Argentinean loans by major banks with Argentinean loan exposure. This event has escaped investigation in the empirical literature of the LDC debt crisis. A seemingly unrelated regression study, rather than a Brown and Warner (1980) event study, is employed to investigate two pairs of hypotheses, namely the new‐information vs. information‐leakage hypothesis and the rational‐pricing vs. investor‐contagion hypothesis, using daily stock market data. Sample banks are grouped into three portfolios (highly exposed multinational banks, mildly exposed regional wholesale banks and unexposed or nominally exposed regional consumer banks) to test the investor‐contagion effect. The results indicate that the stock market adjusts quickly to new information, thereby providing evidence of semi‐strong‐form market efficiency. Unlike previous research, this research finds strong evidence for an investor‐contagion effect.

The purpose of this study is to examine the effects of developmental opportunities and perceived pay equity-and paternalistic leadership on affective organizational commitment and the moderating role of paternalistic leadership at the team level in a Korean context.

Hierarchical linear modeling with a two-level design was used to analyze data collected from 844 employees and 59 work teams.

The study identified that developmental opportunities and perceived pay equity were significantly associated with affective organizational commitment. However, paternalistic leadership was not significantly related to affective organizational commitment. The results also showed that the moderation effect of paternalistic leadership on the relationship between pay equity and organizational commitment was non-significant, and paternalistic leadership moderated the relationship between developmental opportunities and organizational commitment. In particular, the relationship of developmental opportunities with organizational commitment became weaker when the supervisor’s paternalistic leadership was stronger.

The results of this study supported the applicability of organizational support theory and previous empirical studies supporting the relationships between human resource (HR) practices and commitment, particularly in the Korean cultural context. The results have several practical implications for employers, mangers and HR practitioners in an East Asian cultural context.

This study extends the body of knowledge in leadership research by investigating the influences of two key factors of HR practices and a Confucianism-based indigenous leadership theory on organizational commitment. More importantly, the results can guide future cross-national or cross-organizational studies exploring the relationships among leadership, organizational culture and organizational effectiveness. This study also offers clearer empirical evidence for why and how developmental opportunities and perceived pay equity need to be enhanced in an East Asian cultural context.

The purpose of this paper is to present and evaluate the performance of innovation systems by considering two indicators of efficiency and effectiveness. The scope of the evaluation is globally and due to the situation of each country, the suggested strategies are proposed to maintain the status quo or move toward the desired situation for countries.

The approach is to compare and benchmark the countries in terms of the efficiency and effectiveness of their innovation system. The Global Innovation Index report’s input-to-output ratio and the global competitiveness report are used for the assessment.

The findings indicate that countries such as China, Switzerland and the USA have an efficient and effective innovation system. However, the innovation systems in countries such as Brazil and Zimbabwe are not only inefficient but also ineffective. The findings also indicate that the innovation systems of countries such as Iran, Armenia and Egypt are efficient but ineffective. Finally, the authors can name Australia, Qatar and Russia as countries with effective but inefficient innovation systems.

Assessment of national innovation system using efficiency and effectiveness performances is done for the first time at the global stage.

This paper studies the current realities of the Islamic banking system of Brunei Darussalam from the perspective of the theories of modern financial intermediation and Islamic financial contracting. The limited information on the banking system of Brunei Darussalam reveals that the first phase of the Islamic banking experimentation has been successful, as Islamic banks command roughly 11.5 per cent of the market share. The financial services industry, however, remains extremely competitive and Islamic banks face formidable challenges from conventional banks. Islamic banks can proliferate if they: advance towards the second phase by gradually consolidating retail banking with investment banking; establish vital links with local and foreign institutions; and use ijtihad in modern financial engineering to optimally design loans while simultaneously reducing their risk exposure. An efficient Islamic financial system can allocate limited capital resources to the most profitable ventures and assist in wealth creation. This can foster the growth not only of Negara Brunei Darussalam but also of the regional economies, particularly at this crucial juncture when Asian economies are reeling from the current financial crisis.

This study aims to assess the effect of director board and audit committee attributes and ownership structure on firm performance. In general, resource dependency and agency theories have underlined the superior performance of firms equipped with stronger Corporate Governance (CG) versus those of deficient governance. Concurrently, the study delineated the provisions of ownership structure provision, specifically foreign ownership and institutional ownerships, thus describing the component denoting the structural significance in explicating firm performance.

The current study implemented an empirical approach involving the construction of extensive CG measures thus, subjected to 81 non-financial firms listed on the Amman Stock Exchange spanning the period of 2014–2018.

The current study identified the positive and significant relationship between the board of directors and audit committee characteristics with the firm performance measures tested, namely, return on equity (ROE) and Tobin’s Q. In terms of ownership structure, both foreign and institutional ownerships yielded a significant and positive relationship with ROE. Meanwhile, Tobin’s Q led to an insignificant and negative relationship between both ownership types and firm performance measures.

The analytical outcomes substantiate the possibility of enhanced performance shown by growing global firms because of the implementation of CG mechanisms, specifically because of the practices resulting in minimised agency costs.

The current study offers novel evidence detailing the impact of CG effectiveness towards performance and its implementation in emerging markets following the minimal amount of scholarly efforts on the topic. It is a timely contribution towards the current understanding of the relationship linking governance and performance for the purpose of ensuring the adoption and imposition of a strong corporate governance code by the government.

The study aims is to examine the determinant factors of small and medium enterprises’ (SMEs’) intention to adopt the Islamic crowdfunding model as alternative sources of finance.

Using a survey questionnaire, 385 responses were received from owners and managers of SMEs in three states (Kano, Kaduna and Katsina) of northwestern Nigeria and analyses using PLS-SEM 3.0 software.

All hypotheses were found to be significant.

The research focused only on northwestern Nigeria; there is a need for further research to focus on other geographical zones in Nigeria.

Crowd funders and policymakers can use these findings to enable the adoption of the Islamic crowdfunding model.

The previous study has not examined the role of technology acceptance model in the adoption of the financial model; these findings contribute to the crowdfunding literature by filling this gap.